Top 5 Insurance Myths Debunked

Protecting yourself starts with knowing the facts.

At Perry & Associates Insurance, we’ve heard just about every insurance misconception out there—and we get it. Insurance can be complex, and with so much information (and misinformation) floating around, it’s easy to fall for a few common myths.

So today, we’re setting the record straight. Let’s debunk five of the most common insurance myths we hear from clients every day.

🔍 Myth #1: “I’m young and healthy—I don’t need life insurance.”

Truth: Life insurance isn’t just for older adults or parents. In fact, buying life insurance while you're young and healthy can lock in a much lower premium. It’s not just about death benefits either—many life insurance policies offer living benefits or cash value components that grow over time.

🚗 Myth #2: “Red cars cost more to insure.”

Truth: The color of your car has zero impact on your auto insurance premium. What actually affects your rate? Factors like the make and model, age of the vehicle, your driving record, where you live, and how often you drive.

🏡 Myth #3: “Home insurance covers everything.”

Truth: Unfortunately, that’s not always the case. Standard homeowners insurance doesn’t usually cover floods, earthquakes, or routine wear and tear. Depending on where you live, you may need additional policies to fully protect your property.

👩‍💼 Myth #4: “Small businesses don’t need insurance.”

Truth: Even if you're a sole proprietor or side hustler, you’re still at risk. One accident, lawsuit, or cyber breach could wipe out your business. Business insurance isn’t just for big companies—it’s for anyone with clients, inventory, or data to protect.

💸 Myth #5: “The minimum coverage is enough.”

Truth: State minimums are often just that—minimums. They may not provide enough coverage in a serious accident or liability situation. Having proper coverage means protecting not only your assets, but also your peace of mind.

✅ The Bottom Line

Insurance isn’t one-size-fits-all, and believing these myths can leave you underprotected when it matters most. At Perry & Associates Insurance, we’re here to help you understand your options and choose the coverage that truly fits your life.